PRE BUDGET REPORT – AT A GLANCE GUIDE
Chancellor Alistair Darling presented his first Pre-Budget Report on Tuesday 9 October 2007. The main proposals, which included some major changes, are set out below.
Capital Gains Tax
The abolition of taper relief and indexation allowance for capital
gains tax (CGT).
The introduction of a flat rate of CGT for individuals of 18%.
Inheritance Tax
A significant change in inheritance tax relief for married couples
and civil partners. The new rules will allow any nil-rate band unused on the first death to be used when the surviving spouse or civil partner dies. For widows and widowers this will be backdated indefinitely.
Non Domiciles
Non domiciles to pay an annual charge of £30,000 for their tax
advantaged status.
Income Shifting
Proposals to stop the tax savings available to businesses by income
shifting between family members.
Company Cars
An increase in the car fuel scale charge.
